House Republican Introduces Tariff Bill That Could Replace IEEPA Levies
House Ways and Means Committee member Rep. Beth Van Duyne, R-Texas, introduced a bill last week that would impose 10% tariffs on goods imported from countries that have trade surpluses with the U.S. and 15% tariffs on goods from countries that have trade deficits with the U.S.
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The current International Emergency Economic Powers Act tariffs are 10% for countries with a trade surplus, but tariffs on countries with trade deficits vary, and some are as high as 25%. However, they don't apply to all goods, and for some countries, such as Canada, Mexico and Taiwan, a majority of exports aren't covered.
Like the IEEPA tariff, the duties would be in addition to most-favored-nation tariff rates. (However, the U.S. has agreed to all-in 15% rates for the EU, Japan and South Korea; the U.K. has an all-in 10% rate.)
The bill gives the president the authority to lower the tariff on any good "to an amount greater than 0 percent" if the president determines it is in the national interest. But before changing rates, the president must consult with Ways and Means members and Senate Finance Committee members.
A statement from Van Duyne's office said she introduced the bill "due to the rampant abuse we have seen in past years where 'free trade' with the American market was not fair trade for our companies and consumers."
She said it's time to codify tariffs "to ensure the American people and our businesses are not being taken advantage of or blocked from accessing foreign markets."
The statement didn't address the pending case at the Supreme Court that could invalidate the IEEPA tariffs.